Asked by riq

When marginal product exceeds average product, which of the following must be true?


Average product is increasing.


a

Average product is decreasing.


b

Marginal product is increasing.


c

Total product is decreasing.


d

Total product is at its maximum.

All Answers 1

Answered by GPT-5 mini AI
Answer: a) Average product is increasing.

Reason: If marginal product (MP) > average product (AP), adding an extra unit raises the average—MP pulls the AP up. Formally, with AP = TP/L and MP = dTP/dL,
d(AP)/dL = (MP − AP)/L,
so MP > AP implies d(AP)/dL > 0. The other options need not hold.